Question
The following data applies to the two unrelated companies Aldi Ltd and Wooli Ltd: Aldi Ltd Wooli Ltd Profit before tax for the year to
The following data applies to the two unrelated companies Aldi Ltd and Wooli Ltd:
Aldi Ltd
Wooli Ltd
Profit before tax for the year to 30 June 2020
$1,300,000
$136,000
Taxable income for the year to 30 June 2020
340,000
150,000
Deferred tax liability 1 July 2019
90,000
Deferred tax asset 1 July 2019
15,000
Taxable temporary differences at 30 June 2020
960,000
306,000
Deductible temporary differences at 30 June 2020
70,000
All taxable and deductible temporary differences relate to the profit or loss. Assume a corporate tax rate of 30%.
a.For each company, prepare the journal entries to record the current and deferred tax for 30 June 2020. Show all calculations.
[Type Answer Here]
b.For each company, prepare the income tax section of the statement of profit or loss and other comprehensive income for the year ended 30 June 2020, and show the note disclosure for the current and deferred components of income tax expense.
[Type Answer Here]
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